International Journal of Economics. AUBusinessAU and Accounting Research (AUIJEBARAU) Peer Reviewed Ae International Journal Vol-1. Issue-1, 2017 (IJEBAR) ISSN: 2614-1280AU,AU AUhttps://jurnal. stie-aas. id/index. php/IJEBAR FACTORS AFFECTING CAPITAL STRUCTURE ON REGIONAL COMPANY OF BKK RURAL BANKS IN SUKOHARJO REGENCY Hadi Samanto STIE-AAS. Central . Indonesia Email: hadisamanto361@gmail. Abstract: The analysis result shows that sales positively affect the capital structure, it means that more sales increase is financed by debt. The asset structure does not positively affect the capital structure, it means that additional current assets are more financed from debt. Profitability has no negative effect on capital structure, it means that profits earned by the company can be partially replanted into the company to increase their own capital. Growth does not negatively affect the capital structure, it means a declining growth rate from year to year due to limited own capital, so asset growth is still financed by Based on the F tests, it shows the sales, asset structure, profitability, growth affects the capital structure simultaneously. Coefficient of determination RA. Adjusted R Square value is obtained which shows sales, asset structure, profitability, and growth can explain the structure of capital, the remainder is explained by the residual variable or outside of this study. KeywordsAU: sales, asset structure, profitability, growth, and regression linear multiple. Introduction The company's capital needs can be met from internal sources namely funds which originating from within the company or external sources that are from outside the External sources derived from the owner or the participant are a separate component of capital, while those originating from the creditors are loan Balance between total loan capitalor debt with the amount of capital structure,while the capital structure is the balance between long-term debt and the amount of capital itself. Formulation of the problem hen viewed the amount of assets, deposits and savings of regional company of rural banks in Surakarta Residency have a fairly large scale operation. Therefore a decision on spending taken by the company's chairman will have a broad impact on the company's profits. he main problem in this research is what factors affect the capital structure on International Journal of Economics. AUBusinessAU and Accounting Research (AUIJEBARAU) Page 38 International Journal of Economics. AUBusinessAU and Accounting Research (AUIJEBARAU) Peer Reviewed Ae International Journal Vol-1. Issue-1, 2017 (IJEBAR) ISSN: 2614-1280AU,AU AUhttps://jurnal. stie-aas. id/index. php/IJEBAR Regional Company of BKK rural banks in Sukoharjo Regency? Profitability has a significant negative effect on capital structure on at a local rural Bank BKK in Sukoharjo Regency. Journal Objectives and benefits Based on the issues presented before, this study aims to analyze the factors that affect the capital structure Regional Company of Rural Bank in Sukoharjo Regency. The results of this study can be used for leadership of Regional Company of rural banks in Sukoharjo Regency for the consideration in making decisions about capital structure. H4: Hypothesis Based on the background and problems as well as the theoretical framework of factors affecting the capital structure, it can be proposed four alternative hypothesis as H1: Sales have a significant positive impact on capital structure at a local rural Bank BKK in Sukoharjo Regency. H2: The structure of assets has a significant positive effect on capital structure at a local rural Bank BKK in Sukoharjo Regency. H3: Growth has significant negative effect to capital structureat a local rural Bank BKK in Sukoharjo Regency. ome of the journals that support the research: 1 Ramezani . , in his article of growth, corporate profitability, and value creation, describes the relationship of the company's performance with the growth or sales made by the industry on investment. Most affect the compensation schemes of management and portfolio decisions or mutual funds. In this article described the relationship between growth and company performance with two First, relationship between the ability to earn corporate profits. Second, economic value added and sales growth rate. 2 Scott . , in his article Loan Officer Turnover and Credit Availability for Small Firms, outlining empirical evidence of the role of loan officers running the facilities of small firms in relation to commercial banks that lend. If the loan officer uses soft information . uch as an assessment of the nature of a person, information from consumers and material provider. to International Journal of Economics. AUBusinessAU and Accounting Research (AUIJEBARAU) Page 39 International Journal of Economics. AUBusinessAU and Accounting Research (AUIJEBARAU) Peer Reviewed Ae International Journal Vol-1. Issue-1, 2017 (IJEBAR) ISSN: 2614-1280AU,AU AUhttps://jurnal. stie-aas. id/index. php/IJEBAR make loan decisions in other ways not only based on financial information . ax returns or financial statement. then turnover of credit officers have a bad influence on the availability of 3 Craig . , in his article The Use Nonqualified Structured Settlements in the Sale of Capital Assets, which outlines the sales structure is a unique opportunity to provide a new solution for a buyerand for people who want to sell capital goods or need it,in the sales process is taxed. 4 Lundsten . , in his article "Improve Your Profitability and Cash Flow: Critical steps to expedite Government Payments", which describes that research on business with the government is good for corporate cash flow, the situation can be seen from the entry of contracts made company. Each contract affects the cash flow of the Grouped into three phases in this contract include proposal performance, and final approval. number of steps in the form of employment of several people, significantly improving cash flow. The processes and procedures described occur very complex and repetitive and are subject to learning curve . anagers and process operators learn from experience on how to operate new technologies progressively reduce production The more experience the less time is wasted. Such a way can significantly improve the ability to earn profit and cash flow. 5 Garrett . , in his article Building High-Performance buying and Selling Teams describes leadership skills especially in selling with increasing product and services. Various levels of leadership related to skills for each level in the long term to achieve success. When a business group of professionals to solve the integrated purchasing and selling problems of the various products and services available, the ability to determine the timing and accuracy of deciding is to determine One of the most important to be a successful leaderand consistent in the field is when it can communicate sales and purchases. 6 Boot . , in its article Disagreement and Flexibility: A Theory of Optimal Security Issuance and Capital Structure describes flexibility as the economic concept and decision of securities selection and capital structure. Flexibility is the ability to make the best thought decisions when others disagree. The company's management assesses the flexibility because it makes the best trustworthy decision for shareholders without being blocked by people International Journal of Economics. AUBusinessAU and Accounting Research (AUIJEBARAU) Page 40 International Journal of Economics. AUBusinessAU and Accounting Research (AUIJEBARAU) Peer Reviewed Ae International Journal Vol-1. Issue-1, 2017 (IJEBAR) ISSN: 2614-1280AU,AU AUhttps://jurnal. stie-aas. id/index. php/IJEBAR who disagree. The amount of management flexibility has some time depending on how the company is levied. Debt offers little flexibility for own capital. However, flexibility is offered by the capital itself depending on outside parties where shareholders are in deciding to choose a management strategy. Capital itself offers the greatest flexibility when shareholders desire to approve the highest. The benefits of capital flexibility alone are high when stock prices are high. The choice of stock expenditure is void if the benefit of the stock is not better than the debt. Scope of the Research This research is an applied research that is done systematically and continuously to a problem with the aim to be used immediately for certain purposes. The topic of this research is about the influence of sales stability factor, asset structure, growth rate, and profitability to capital structure. The research was conducted in the Regional Company of Rural Bank of BKK Baki. Regional Company of Rural Bank of BKK Bendosari. Regional Company of rural bank BKK Grogol. Regional Company of Rural Bank of BKK Mojolaban, and rural bank BKK Sukoharjo. Analysis Method The research model is as follows: B0 B1X1 B2X2 B3X3t-1 B4X4 e = Capital structure. = Sales. = Structure of assets. XAU3t-1 = Profitability (Return On Investmen. Year t-1. = Growth Rate. = Disorder variable. = Intercept . BAU2AU. BAU3AU. BAU4AU, show the regression keophisien for each variable. To determine whether the regression coefficient has been obtained meaningful or not, then at 95% confidence level is tested hypothesis coefficient of regression simultaneously and test of regression coefficient hypothesis individually. Classic Assumption Test ecause the data used is secondary data,then to determine the accuracy of the model needs to be tested on some of the classical assumptions underlying the regression model. Testing of classical assumption used in this research include multicolinearity, heteroscedasticity and Each of these classical assumptions in detail can be explained as 1 Multicollinearity he first assumption test is multicolinearity test . between independent variables that enter into the model. Methods multicollinearity were performed with a International Journal of Economics. AUBusinessAU and Accounting Research (AUIJEBARAU) Page 41 International Journal of Economics. AUBusinessAU and Accounting Research (AUIJEBARAU) Peer Reviewed Ae International Journal Vol-1. Issue-1, 2017 (IJEBAR) ISSN: 2614-1280AU,AU AUhttps://jurnal. stie-aas. id/index. php/IJEBAR predicted correlation . 70, and when the zero degree correlation was also high, but none or very few partial regression coefficients were individually statistically significant on the basis of conventional t test (Gujarati, 2003 : . In addition, we can also use the Variance Inflation Factor test which is calculated by the following formula: (Gujarati, 2003: . If VIF is greater than 10, then between independent variable occurs multicolinearity problem. Multiplier is as follows (Setiaji, 2006: odels used: Y = a bAU1AUX1 bAU2AUXAU2AU bAU3AUXAU3 AU bAU4AUXAU4AU e 2 Heteroscedasticity The second test is heteroscedasticity used to heteroscedasticity with Glejser test is calculated by the following formula: (Gujarati, 2003: . Wherein: eAUiAU: residuals XAUiAU: independent variable estimated to have close relationship with variance (EiAU2AU). vAUiAU: error element. If statistically found significant relationship,it can be concluded that there is heteroscedasticity in the variant of and vice versa. Besides, it can also be used Langrang Multiplier test (LM). The test procedure of Langrang Perform the above regression and compute the e and the estimated value of Y (Y predicte. Squares the two variables above. Now do the regression with the following model, e2 = a b2 u. e2 is the dependent variable, and u is an independent variable. Calculate R from the above rescue Now multiply R obtained by the large sample N = RAU2AUxN. Compare with the result with Chi Square table with one degree free . ince we have one free variabl. and alpha one percent. The value of Chi Square is 9,2. If RAU2AUxN is more than 9. 2 then standard error has heteroscedasticity. Conversely, if RAU2AUxN is smaller than 2 then standard error . does not experience heterodasticity. 3 Autocorrelation he third classical assumption test in a linear regression model is the presence or absence of autocorrelation. To test the existence of autocorrelation in the research. Durbin-Waston test (Gujarati, 2003: . , where the required numbers in the method is dl . umber obtained from the lower limit of DW tabl. , du . umber obtained from the DW table International Journal of Economics. AUBusinessAU and Accounting Research (AUIJEBARAU) Page 42 International Journal of Economics. AUBusinessAU and Accounting Research (AUIJEBARAU) Peer Reviewed Ae International Journal Vol-1. Issue-1, 2017 (IJEBAR) ISSN: 2614-1280AU,AU AUhttps://jurnal. stie-aas. id/index. php/IJEBAR Positive Indication autocorrelation, otherwise if close to 0 or 4 occur autocorrelation ( /-). The No-auto Indication Negative position of the Durbin Waston test autocorrelation numbers can be illustrated upper limi. , 4 - dl, and 4 - du. If the value is close to 2 then there is no 4-du Picture: Position Number of Durbin Watson Hypothesis Testing Testing of the hypothesis is done in the following way: 1 Test of significance . eal influenc. of independent variables (X. to F-statistics test This test is used to test the significance of the effect of all independent variables together on the dependent variable. This hypothesis is formulated as follows: HAU1AU : bAU1,AUbAU2AU,bAU3AU,bAU4 O AU 0 This means that there is a significant influence together from independent variables (XAU1AU. XAU2AU. XAU3AU. XAU4AU) to the dependent variable (Y). The F-count value can be searched by the formula (Gujarati, 2003: . 4-dl -. wherein "n" is the number of observations, "k" is the number of variables including intercept, with the test criteria used are: FAUcountAU> FAUtable . , k - 1, n - . , then HAUo is rejected. F AUcount t-AUtable (, n - k -. , then HAUo is AU If t-AUcount